Oil extends losses and erases most of 2018 gains

• Oil down on US record high output. 
• WTI Extended losses on another sharp slide in Wall Street.  

Crude oil prices were falling for the second day in a row and the fourth time out of the last five trading days. WTI dropped to $60.59 a barrel hitting a fresh 1-month low. Price was holding near the lows, moving with a bearish perspective. 

From last week highs, WTI lost almost 8%, breaking yesterday below the key short-term support located at $62.80/90 (Jan 19 low). The technical outlook and indicators favor the downside. Immediate support below daily lows are seen at $60.00 and $59.20. 

From the fundamental side, data on US output and news that North Sea’s largest crude pipeline restarted weakened the demand for crude oil futures. A report showed that US weekly production reached a record 10.25 million barrels a day last week, above Opec’s largest producer, Saudi Arabia. It is expected to rise even further. 

Also affecting crude oil during the current US session was the slide in equity prices. The Dow Jones was losing more than 500 points (-2.05%) while US bonds rebounded boosted by risk aversion.